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  • income for support - are payments into a work pension deducted

    I would like to know if one spouse does have a work pension, does the amount paid into the plan, taken off the paycheck, actually reduce the income used for the calculation of support say in divorcemete?

    I just think that if one spouse has this deduction (allowing them yo rightfully continue to save for thier retirement) and the other spouse does not have this benefit or even choses to pay into a personal rrsp at the same amount -- either one would not allow for the deduction from income for support purposes. If this is true, can this not actually be considered unfair to the spouse without the pension or the pension deduction.

    can anyone answer this? I looked in the guides, which does say deductions as detailed under schedule III
    http://www.e-laws.gov.on.ca/html/reg...391_e.htm#BK20

    Federal Child Support Guidelines
    I just can't find a direct yes or no.....
    Last edited by ddol1; 12-02-2012, 04:06 AM.

  • #2
    Since income for calculating support is taken from line 150, it is unaffected by deductions for contributions to RRSPs. So if I ean 100K and deduct 20K rrsp, then I still pay based on 100K.

    I'm assuming it is the same for other pension plans.
    Last edited by dinkyface; 12-02-2012, 08:24 PM.

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    • #3
      Doesn't apply for basic CS amounts, but some deductions are allowable for other support calculations that take into account net income rather than gross, such as splitting S7 expenses or spousal support.

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      • #4
        The following appears to indicate that mandatory pension contributions DO reduce income for SPOUSAL support, but that there is some leeway about whether RRSP contributions also reduce income. You can find the actual case on CANLII.

        Briere v. Saint-Pierre, 2007 CarswellOnt 4763, [2007] O.J. No. 2926 (R. Smith J.)
        Together 24 years, common-law same-sex couple
        Applicant school principal, earns $100,000
        Respondent supply teacher earns $22,000, could work full-time to earn $32,000
        Respondent had left previous employment, to run two restaurants owned by them, failed
        Joint condominium to be sold
        Range stated with mandatory pension contribution deduction for applicant of $8,256,
        RRSP deduction of $5,000 for respondent, incomes $100,000 and $24,000: $2,265-$3,020
        Interim spousal support of $2,000/mo., if $32,000 to respondent and pension deducted
        [Range if $100,000/$32,000, no pension deductions: $2,040-$2,720]
        [Range if $100,000/$32,000, pensions deducted: $1,942-$2,589]

        From http://www.law.utoronto.ca/documents...oupdate_ap.pdf

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        • #5
          Originally posted by dinkyface View Post
          Since income for calculating support is taken from line 150, it is unaffected by deductions for contributions to RRSPs. So if I ean 100K and deduct 20K rrsp, then I still pay based on 100K.

          I'm assuming it is the same for other pension plans.
          It works the other way too. For example if your employer matches your RRSP contribution, you essientally would get up to 9% of your income that doesn't show up on line 150.

          I think also if your employer pays into a pension or say writes you a cheque for 15% of your salary to your investor for an RRSP it also doesn't show up on line 150.

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